Balance Sheet and Income Statement Preparation for LKPM Submission: Key Rules and Compliance Strategies

Corporate Secretary Service Indonesia – Balance sheet and income statement preparation for LKPM submission is an essential part of maintaining compliance for Foreign Direct Investment (PMA) companies in Indonesia. Each PMA is required to submit an LKPM (Investment Activity Report) regularly to report on the progress and obstacles in the investment process. Such would enable the valley to run smoothly and maintain its ongoing endorsement by BKPM.

Who Shall Prepare and Submit LKPM

All enterprises with OSS business licenses must draw up and submit the LKPM. It covers companies of both Domestic Investment (PMDN) and Foreign Investment (PMA) that have reached the implementation, production, or operational stage.

Micro-enterprises whose investments do not reach IDR 50 million, as well as banking, insurance, and upstream oil and gas, are usually added as exceptions.

Why Balance Sheet and Income Statement Preparation Matters

Accurate financial data plays a central role in completing LKPM. The government uses your balance sheet and income statement preparation for LKPM submission to review investment progress and financial consistency. These statements reflect how capital is used, asset recognition, and revenue generation. Inaccurate figures can delay processing or trigger administrative review.

Where and How to Submit LKPM

You must submit the LKPM through:

• The BKPM’s central system via OSS.
• The provincial or regional DPMPTSP office if applicable.

The reporting process includes:

• Register in OSS: Create or access an OSS account.
• Complete the LKPM Form: Provide company details, investment realization, and operational issues.
• Attach Financial Reports: Include balance sheets, income statements, and supporting evidence like invoices or asset purchases.
• Submit the LKPM: Review before sending. Successful submission generates an electronic receipt.
• Follow Up: Address any correction requests promptly.

Reporting Period and Deadlines

The reporting frequency depends on investment value:

• IDR 50 million to 500 million: Every 6 months.
• Above IDR 500 million: Every 3 months.

Key submission deadlines:

• Semester I: July 10
• Semester II: January 10
• Quarter I: April 10
• Quarter II: July 10
• Quarter III: October 10
• Quarter IV: January 10

Companies must meet these deadlines to avoid administrative penalties.

Read More: Company Professional Guidance, Annual Shareholders Resolutions Preparation Services in Indonesia

Required Documents for LKPM Submission

• Company business license and supporting permits.
• Balance sheet and income statement preparation for LKPM submission.
• Data on investment realization and capital use.
• Supporting operational documents like project progress reports or purchase records.

Sanctions for Non-Compliance

Failure to submit LKPM can lead to administrative sanctions under Article 49 of BKPM Regulation No. 6/2020. These include written warnings, business restrictions, temporary suspension, or license revocation. Continuous non-compliance can also impact future investment approvals.

How a Corporate Secretarial Partner Can Help

Handling LKPM internally often consumes significant administrative effort. Outsourcing balance sheet and income statement preparation for LKPM submission to a corporate secretarial service ensures accuracy and timely compliance.

A professional service assists you in:

• Collecting and reviewing data for each reporting period.
• Preparing and verifying financial reports in correct format.
• Ensuring submission deadlines are met.
• Responding quickly to BKPM requests or clarification notices.

Why Compliance Builds Credibility

By reporting LKPM correctly, your company is strengthening its relations with the Indonesian authorities. It communicates that you take compliance seriously, positions your organization for growth, and keeps penalties at bay. Clear record-keeping benefits internal management by providing valid data for both strategic policies and operations.

The preparation of the balance sheet and income statement for reporting LKPM is not limited to an “act of reporting” only. It’s a check on whether a company’s business is good for business, and it allays investors’ concerns. Engage seasoned consultants to streamline your LKPM process and ensure continued business operations in Indonesia.

Portcorp is here as a solution for your business, also when you need balance sheet and income statement preparation for LKPM submission. Portcorp is your comprehensive corporate secretary service in Indonesia. Our company secretaries will track deadlines and file paperwork so your business keeps running smoothly. Contact us now on +6221-5020-8090 for your business succeed in the future!